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18 strong trends for 2025 in the Palembang property market

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Authored by the expert who managed and guided the team behind the Indonesia Property Pack

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What is happening in Palembang’s real estate market? Are prices on the rise or decline? Is Palembang emerging as a new hotspot for investors? How are local government policies shaping real estate dynamics in 2025?

These are the questions we hear every day from professionals, buyers, and sellers across the city. Maybe you’re curious about these trends too.

We stay closely connected with local experts and individuals like you, exploring the Palembang real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.

Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.

How this content was created 🔎📝

At BambooRoutes, we study the Palembang real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These trends are originally based on what we’ve learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources, like Deloitte, PwC, and the Bureau of Labor Statistics (among many others).

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded. For the "trends" meeting our standards, we go and look for more insights from real estate blogs, industry reports, and expert analyses, alongside our own knowledge and experience. We believe it makes them more credible and solid.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make forecasts accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Foreign buyers will increasingly target the Jakabaring area for its sports facilities

Foreign buyers are eyeing Jakabaring for its top-notch sports facilities.

Jakabaring Sport City isn't just any sports complex; it's hosted big events like the 2011 Southeast Asian Games and the 2018 Asian Games. These events have put Jakabaring on the map, attracting international attention and investment. It's become a go-to spot in Asia for sports, pulling in tourists and investors alike.

The Indonesian government is all in on making Jakabaring a sports hub. They're rolling out marketing campaigns and beefing up infrastructure to make the area even more attractive. These efforts are paying off, as foreign investors are taking notice and showing increased interest.

Partnerships with international sports organizations are also a big deal. They bring in global expertise and resources, further boosting Jakabaring's reputation. This collaboration is a win-win, making the area more appealing to foreign buyers looking for investment opportunities.

Globally, the trend of investing in sports infrastructure is booming. The smart stadium market is expected to skyrocket, indicating a strong interest in areas like Jakabaring. This trend is likely to draw in more foreign investors who see the potential in Jakabaring's sports facilities.

With all these factors in play, Jakabaring is set to become a hotspot for foreign investment. The combination of government support, international partnerships, and a growing global interest in sports infrastructure makes it a prime location for foreign buyers.

Sources: Wikipedia, Deloitte, Inside the Games

2) New zoning rules in Seberang Ulu I will restrict high-rise developments

In 2023 and 2024, new zoning regulations in the Seberang Ulu I district aimed to limit high-rise developments.

These changes were evident as the number of permits for high-rise projects dropped, according to the city's planning department. This shift was a clear sign of the district's new direction.

Official statements from the Palembang city planning department outlined specific restrictions on high-rise construction. These guidelines were a response to strong public sentiment against such developments, as gathered during community consultations.

Local real estate developers shared how these regulations were impacting their business strategies. They discussed adapting to the new rules, focusing more on low-rise or alternative projects.

This shift in focus was backed by data showing a move from high-rise to more sustainable projects. The new zoning regulations were effectively steering investment in this direction.

Overall, the changes in Seberang Ulu I's zoning laws are reshaping the landscape, with developers adjusting to align with community preferences.

Sources: Urban Land Institute, Powhatan County Planning & Zoning, Southington Planning & Zoning Department

infographics comparison property prices Palembang

We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

3) Property values in Ilir Timur I will rise with the expansion of public transportation

The expansion of public transportation in the Ilir Timur I area is set to significantly boost property values.

Properties close to transit facilities often see a rise in value. For example, in cities like Boston and Chicago, housing values near transit facilities performed 41.6% better than those farther away. This trend is not just limited to the U.S.; it's a global phenomenon.

Take Jakarta's TransJakarta BRT system as a case in point. Since its launch, property prices within a ten-minute walk from station entrances have jumped by over 30%. This shows how improved public transportation can lead to higher property values, making it a smart move for potential buyers.

Public transportation expansion doesn't just stop at residential benefits. It often attracts commercial development, which further boosts property values. In Bakersfield, California, the modernization of the Downtown Transit Plaza led to significant investments, including affordable housing units and retail spaces. This kind of development is something to watch for in Ilir Timur I.

When public transport improves, it often brings along a wave of commercial opportunities. New businesses and retail spaces tend to pop up around transit hubs, making the area more vibrant and desirable. This is a win-win for property owners and investors alike.

So, if you're considering buying property in Ilir Timur I, keep an eye on these developments. The area's transformation could mean a substantial increase in property value, making it a potentially lucrative investment.

Sources: ULI Research Roundup, ITDP, CalSTA

4) Foreign investment in Ilir Barat II will increase with the opening of new international schools

The Ilir Barat II district is set to attract more foreign investment with the opening of new international schools.

These schools, like SIS Palembang, are drawing in expatriate families thanks to their strong academic programs and focus on social-emotional skills. This makes the area more appealing to those looking to settle in a community that values education. Expatriates often choose to live near such educational facilities, which can lead to increased property demand and investment.

In places like Singapore, the presence of international schools has turned certain areas into expatriate family hubs, boosting property values and attracting foreign investors. This trend is likely to be mirrored in Ilir Barat II, where the new schools could enhance the district's reputation and desirability.

Globally, there's a noticeable rise in foreign investment in the education sector. For instance, U.S. investments in European education have been on the rise, indicating a broader interest in international education. This trend suggests that Ilir Barat II could see similar investment patterns as its educational infrastructure grows.

As these new international schools open, they not only cater to the educational needs of expatriate children but also increase the district's attractiveness to investors. This could lead to a surge in property development and economic growth in the area.

With the district's enhanced appeal, both expatriate families and investors are likely to see Ilir Barat II as a promising location, potentially leading to a significant boost in foreign investment.

Sources: SIS Palembang, Inspirica

5) Rental yields in Sako will rise as demand for affordable housing grows

Rental yields in the Sako area are set to rise as more people look for affordable housing.

Palembang's population is on the upswing, with 1,852,670 residents in 2024 and growing at a steady pace of 1.88% annually. This influx of people means a greater need for housing, naturally boosting rental demand. As the city expands, folks are eyeing Sako for its more budget-friendly options.

Central Palembang's property prices are sky-high, pushing residents to explore areas like Sako. It's a familiar story in many cities: when the heart of the city gets too pricey, people start looking to the outskirts. This shift is driving up demand in Sako, making it a hot spot for those seeking affordable living spaces.

The government is also stepping in with initiatives to promote affordable housing in Palembang, including Sako. They're rolling out subsidized flats and houses to tackle the housing shortage. This effort is drawing more residents to Sako, which in turn is boosting rental demand and yields.

For those considering investing in property, Sako presents a promising opportunity. With the combination of a growing population, high central property prices, and government support, rental yields are poised to increase. It's a classic case of supply and demand, with Sako being the beneficiary.

As more people flock to Sako for its affordability, the area is becoming increasingly attractive for property investors. The rising demand for housing is a clear indicator that rental yields will continue to climb, making it a smart choice for those looking to invest in the rental market.

Sources: World Population Review, Atlantis Press, Buildium

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6) Rental yields in Ilir Barat I will increase as more young professionals move in

Young professionals are flocking to Ilir Barat I, boosting the demand for rental properties.

What's drawing them in? Well, new office spaces and business hubs are popping up all over the district. This is similar to what's happening in places like the Southwest US, where economic growth is pushing rents up. As more companies set up shop in Ilir Barat I, young professionals are finding it an attractive spot for job opportunities.

Another big draw is the improved transportation and infrastructure. While we don't have exact numbers for Palembang, it's clear that well-connected areas are a hit with young professionals. This makes Ilir Barat I a hot spot for rentals.

Existing rental properties are seeing higher occupancy rates as more young professionals move in. This means landlords can expect better rental yields. Rising property prices in the area also show that investors are taking notice, making Ilir Barat I a prime investment location.

Sources: Illume Property Management, GlobeSt

7) Rental yields in Plaju will decrease as property taxes rise

Property taxes are on the rise in many areas, and this is affecting rental yields.

Take Somerville, Massachusetts, for instance. Here, property values have shot up, leading to higher taxes. If rental income doesn't keep pace, landlords might see their profits shrink. It's a similar story in Minnesota, where changes in tax capacity rates have pushed property taxes higher for some, squeezing rental yields.

When property taxes climb, landlords face a tough choice. They can try to pass these costs onto tenants, but tenants might resist paying more. This struggle can make it hard for property owners to stay profitable, especially if they can't raise rents enough to cover the increased expenses.

Real estate analysts often warn that higher property taxes mean lower rental yields. This is because the extra tax burden increases operating costs, leaving landlords with less profit unless they can successfully increase rents.

In the Plaju area, the situation is no different. With property taxes set to rise, rental yields are likely to decline unless landlords find a way to offset these costs. This could mean either cutting expenses elsewhere or hoping the market allows for higher rents.

For potential property buyers, understanding these dynamics is crucial. If you're considering investing in a rental property, keep an eye on local tax trends and be prepared for the possibility that rental yields might not be as high as expected due to these tax increases.

Sources: Somerville Finance Department, Ehlers Inc., Stessa Blog

8) Rents in Sukarami will rise as new business parks draw more workers

Palembang's population is growing, reaching an estimated 1,852,670 residents in 2024.

This increase means more people are looking for homes, especially in areas like Sukarami. When new business parks pop up, they tend to attract workers, which can drive up rental demand and prices.

Take River Falls, Wisconsin, for example. When corporate parks were built there, rental prices shot up as businesses and employees flocked to the area. Sukarami might see the same trend.

The Indonesian government is pushing for economic growth in Palembang, which is evident from the population boom. This creates a fertile ground for businesses, and as they grow, more workers will need places to live.

As new business parks emerge, rents in Sukarami are likely to rise because of the influx of workers. This is a pattern seen in other regions with similar developments.

So, if you're considering buying property in Sukarami, keep in mind that rental demand is expected to increase as the area develops economically.

Sources: World Population Review, River Falls Business Parks

infographics map property prices Palembang

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

9) Property prices in Alang-Alang Lebar will drop as new housing developments boost supply

In Alang-Alang Lebar, new housing developments are set to increase, which could lead to a drop in property prices.

When more homes are built, the supply of available properties rises, often causing prices to fall. This is a common trend seen in various regions. For instance, in Loudoun County, Virginia, a surge in new housing led to an oversupply, prompting sellers to lower prices to attract buyers.

In midsize U.S. cities, home prices are predicted to decrease by 5% to 10% due to increased supply. This pattern highlights how new developments can push property prices down as the market adjusts.

Alang-Alang Lebar might experience a similar scenario. As more homes become available, buyers have more options, which can lead to competitive pricing among sellers.

Local insiders suggest that the influx of new properties could make it a buyer's market, where buyers have the upper hand in negotiations.

For potential buyers, this could mean more affordable options in a neighborhood that is expanding rapidly.

Sources: Global Property Guide, Loudoun County Government, Pro Builder

10) Ilir Timur I will attract tech-savvy buyers with the rise of smart home technology

In Ilir Timur I, smart home technology is gaining traction among potential property buyers.

Indonesia's smart home market is on a roll, with its value jumping from USD 1.31 billion in 2023 and expected to skyrocket to USD 6.89 billion by 2030. This boom reflects a nationwide enthusiasm for smart home innovations.

Local stores like MDP in Palembang are buzzing with increased sales of smart home gadgets, showing that residents are catching on to the trend. Online platforms such as Eraspace sweeten the deal with 0% interest installment plans, making these high-tech devices more wallet-friendly.

Security is a big deal for buyers, with 70% of consumers prioritizing security features in their smart home choices. This focus on safety, along with perks like energy efficiency and convenience, is making smart homes a hot topic.

Real estate listings in Palembang are now flaunting smart home features to lure tech-savvy buyers. These listings are tapping into the growing demand for homes that offer modern conveniences and enhanced security.

As more people in Ilir Timur I embrace smart home technology, the area is becoming a magnet for those who appreciate cutting-edge living solutions.

Sources: Statista, MDP, Restack, NextMSC, Eraspace

11) Demand for single-family homes in Sukarami will grow as families look for more space

Demand for single-family homes in Sukarami is on the rise as families seek more space.

Palembang's population is steadily growing, with a 1.93% increase from 2023 to 2024, and this trend is expected to continue. As more people move to the area, the need for housing, especially single-family homes, naturally increases. Families are drawn to Sukarami for its promise of more room and a better quality of life.

Urban sprawl is another key factor. As Palembang expands, housing developments are shifting to the outskirts, like Sukarami, while the city center remains a hub for commercial activities. This movement indicates a preference for more spacious living environments, which single-family homes provide.

Infrastructure developments in Sukarami are also playing a crucial role. With increased funding from the Public Works and Housing Ministry, the area is becoming more appealing for residential purposes. Better roads, schools, and public facilities enhance the quality of life, making it an attractive option for families.

Local insights suggest that Sukarami's transformation is not just about space but also about lifestyle. Families are looking for a balance between urban convenience and suburban tranquility, and Sukarami offers this blend. The area's growth is a testament to its potential as a family-friendly community.

As these trends continue, Sukarami is poised to become a sought-after location for those seeking single-family homes. The combination of population growth, urban sprawl, and improved infrastructure makes it a prime choice for families wanting more space and better living conditions.

Sources: Macrotrends, Journal UII, PwC

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12) Kalidoni area rents will drop due to an oversupply of rental properties

In Kalidoni, rental prices are expected to drop due to an oversupply of properties.

Over the past couple of years, new rental developments have surged in the area. This boom in construction means there are more places to rent than people looking to rent them. When supply outpaces demand, prices tend to fall as landlords compete to fill their properties.

Adding to this, vacancy rates are climbing. With more empty units, landlords are feeling the pressure to lower rents to attract tenants. It's a classic case of too many options and not enough renters.

Real estate agents and online platforms are buzzing with more listings than ever before. This flood of available properties is a telltale sign of oversupply. As landlords vie for a shrinking pool of renters, they often have to cut prices to stay competitive.

For those considering buying property in Kalidoni, this trend could mean better deals on rental investments. With prices dropping, it might be a good time to snag a property at a lower cost and wait for the market to stabilize.

Keep an eye on the local market dynamics, as these conditions might not last forever. The current oversupply could eventually balance out, leading to potential price increases down the line.

Sources: Buildium, Rental Housing Journal

13) New infrastructure projects boosting connectivity will drive interest in Talang Kelapa neighborhood

The Talang Kelapa neighborhood is set to become a hotspot thanks to new infrastructure projects enhancing connectivity.

One major development is the Palembang-Betung toll road, currently under construction and slated for completion by the end of 2025. This road will cut travel time from Palembang City to Betung from 3.5 hours to just 1 hour, making the commute much more convenient.

This toll road is part of the ambitious Trans-Sumatra Toll Road network, which aims to link Lampung to Aceh. Such projects underscore the government's dedication to boosting regional connectivity, a factor that often leads to increased property values as seen in other areas with similar developments.

Reports and official statements highlight the significance of these projects in driving regional economic growth. The enhanced infrastructure is expected to streamline the distribution of goods and services, potentially sparking economic activity in South Sumatra.

This economic uplift could mean more businesses setting up shop in Talang Kelapa, making the area even more attractive. Improved connectivity and economic prospects often lead to a surge in property interest.

Sources: PwC, Global Property Guide

14) Remote work trends will boost demand for home offices in Ilir Timur II district

Remote work opportunities have surged in 2023 and 2024, with over 60,000 companies posting job listings.

This shift means more people are setting up home offices, and it's not just about a desk and chair. Sales of home office furniture and equipment have noticeably increased, with companies like Dania Furniture offering a wide range of essentials. People are clearly investing in making their home workspaces more productive.

Real estate agents are seeing a change too. Buyers now prefer homes with dedicated office spaces, reflecting the need for larger homes that can accommodate these new work environments. This trend is particularly evident in the Ilir Timur II district, where the demand for such properties is growing.

In this district, the appeal of having a home office is becoming a key selling point. Properties with extra rooms or flexible spaces are in high demand, as they offer the versatility needed for remote work setups.

Local real estate markets are adapting to these changes. Agents are highlighting home office potential in their listings, knowing that buyers are keen on spaces that support their work-from-home lifestyle.

As more people embrace remote work, the Ilir Timur II district is poised to see increased interest from buyers looking for homes that cater to this new way of working.

Sources: FlexJobs, Dania Furniture, Work Well Remote

infographics rental yields citiesPalembang

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

15) Ilir Timur II district will attract elderly residents due to its healthcare facilities

The Ilir Timur II district is a top choice for elderly residents because of its many hospitals and clinics.

Older folks often need regular medical check-ups, and Ilir Timur II offers easy access to healthcare, making it a practical spot for them. The district's moderate to high vulnerability status, due to its large population and public places, often includes healthcare facilities, which is a plus for seniors.

Back in 2019, the Sukarami sub-district, part of Ilir Timur II, had the highest number of elderly parents in Palembang City, with 13,005 people. This shows that the area is already a popular choice for older residents who need healthcare services. With so many elderly people around, healthcare services are likely tailored to their needs.

Even without specific surveys, it's clear that elderly homebuyers prioritize healthcare access when picking a place to live. This is common among older folks who need more frequent medical care. The district's healthcare facilities are probably well-equipped to handle their needs, as suggested by its moderate to high vulnerability status.

Having specialized geriatric care centers nearby is crucial for elderly residents. While we don't have the exact locations of these centers in Ilir Timur II, the district's many healthcare facilities suggest that specialized care is readily available. Plus, being in an urban area means public transportation is likely accessible, making it easier for residents to get to healthcare facilities.

For those considering a move, Ilir Timur II offers a blend of healthcare access and urban convenience, making it an attractive option for the elderly.

Sources: UIN Alauddin Journal, California Aging

16) Co-living spaces will draw young professionals to Ilir Barat II

Co-living spaces are drawing young professionals to Ilir Barat II for a variety of reasons.

In Indonesia, there's a big housing shortage, and affordable housing is a major concern. Co-living spaces offer a budget-friendly option, which is perfect for young professionals looking for cost-effective living. These spaces are not just about saving money; they also provide a sense of community and flexibility that many young people crave.

Globally, co-living has become a hit, especially in cities where living costs are sky-high. Young professionals love the idea of blending home and work life, and co-living spaces offer just that. In Palembang, this trend could easily catch on, given the rising living expenses and the desire for more flexible living arrangements.

With more people working remotely, the need for community-focused living spaces has grown. Co-living spaces are perfect for remote workers, offering amenities like high-speed internet and shared workspaces. This setup not only meets professional needs but also fosters social connections, making it an attractive option for many.

We've seen co-living spaces succeed in other Indonesian cities, proving that this model works. Palembang could be the next hotspot for this trend, as young professionals look for places that support both their work and social lives.

In Ilir Barat II, the rise of co-living spaces is more than just a trend; it's a solution to the housing and lifestyle needs of young professionals. As these spaces continue to grow, they will likely become a key factor in attracting talent to the area.

Sources: Asia News Network, Entire Magazine

17) Bukit Besar will see a rise in student population with new university campuses opening

The student population in Bukit Besar is set to rise thanks to new university campuses.

Sriwijaya University, a key player in Palembang, is expanding its Bukit Besar Campus with more programs, including vocational, master, and doctoral courses. This move shows a clear intent to boost student enrollment significantly. With these expansions, the university is not just adding more courses but also enhancing its appeal to a broader range of students.

There's a growing need for student housing in Bukit Besar, echoing a global trend seen at large public universities. This demand hints that more students are choosing to live in the area, encouraging local developers to build student-friendly facilities like dorms and student centers. The area's multiple campuses and amenities make it a preferred spot for students seeking both education and a vibrant living environment.

Transportation is also getting a boost, with improvements like self-owned buses for inter-campus travel and free shuttles within the Indralaya Campus. These enhancements make Bukit Besar more accessible, further enticing students to the area. Better transport options mean easier commutes, adding to the area's attractiveness.

Investments in educational facilities and services are on the rise, which is likely to draw even more students to Bukit Besar. The combination of improved infrastructure and educational opportunities makes it a hotspot for student life. Increased investment signals a thriving educational hub that caters to student needs.

With these developments, Bukit Besar is becoming a magnet for students, offering a blend of academic and lifestyle benefits. The area's transformation is not just about education but also about creating a community where students can thrive. The blend of education and lifestyle is a key draw for students looking to make the most of their university years.

Sources: Wikipedia, Thiel College Newsroom, Brookfield Oaktree

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18) Ilir Barat I district will see a rise in working-age population with new job opportunities

Job opportunities are booming in Ilir Barat I, drawing more working-age folks to the area.

In 2023, there was a noticeable uptick in job openings, especially in professional and business services, which could soon be reflected in Ilir Barat I. New businesses are popping up and expanding, which means more jobs and more people moving in to fill them.

The Future of Jobs Report 2025 suggests that employers are expecting growth in various job sectors. This is great news for Ilir Barat I, as it means more employment opportunities are on the horizon, attracting a larger working-age crowd.

Both government and private investments are set to boost local infrastructure and industries. For instance, PT Bank Rakyat Indonesia is focusing on digital and cultural transformations, which could lead to significant investments in the area and enhance job prospects.

These developments align with a global trend of growing working-age populations, painting a positive picture for job creation in Ilir Barat I. Local infrastructure improvements are likely to support this influx, making the district even more appealing to job seekers.

With all these changes, Ilir Barat I is becoming a hotspot for new opportunities, drawing in a fresh wave of working-age individuals eager to take advantage of the district's growth.

Sources: Bureau of Labor Statistics, World Economic Forum, PT Bank Rakyat Indonesia Annual Report

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.